WP/31583/2024 of M/s. SAR RICE PRODUCTS Vs The State of Telangana on 31 December 2024

[ [321e ]]

HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD(Special Original Jurisdiction)

TUESDAY, THE THIRTY FIRST DAY OF DECEMBERTWO THOUSAND AND TWENTY FOUR

PRESENT

THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI

WRIT PETITION NOS: 31583 AND 32262 0F 2024

W.P.No.31583 of 2024

Between:

1M/s. sAR RlcE PRODUCTS, situated at Sy.No.421l 1, GundrathimaduouVillage, Konijerta_Mandat, Khammam Oistrici nep.l by it" S;E-i;;;;tiX;:mr.Megemqudr [Rama ][Jyothi, ][Wo. ][M. Bala Krishna ][pr-asad, ]Aqed abbut. Ssyears' K/o. Gundrathimadugu village, Konijerla Mandal, Khamiram Districi -507165, Telangana.Village, Konijerta_Mandat, Khammam Oistrici nep.l by it" S;E-i;;;;tiX;:mr.Megemqudr [Rama ][Jyothi, ][Wo. ][M. Bala Krishna ][pr-asad, ]Aqed abbut. Ssyears' K/o. Gundrathimadugu village, Konijerla Mandal, Khamiram Districi -507165, Telangana.

29mt.Medempudi [Rama Jyothi, W/o. M. Bala Krishna prasad, ]Aged about. 55Years, Occ. Sote [pro-prietor ]of M/s. Snn nlCf- pHOfjnCiS, [- ]ru".Gundrathrmadugu Village, Konijerla frrfinOri,' khrri", District_ SO7i65,retangana9mt.Medempudi [Rama Jyothi, W/o. M. Bala Krishna prasad, ]Aged about. 55Years, Occ. Sote [pro-prietor ]of M/s. Snn nlCf- pHOfjnCiS, [- ]ru".Gundrathrmadugu Village, Konijerla frrfinOri,' khrri", District_ SO7i65,retangana

.....PETITIONERS

AND

1 I!9 Stgl: ofTetangana., Rep-, by its principat Secretary to Government,rJonsumer Aratrs, Foocls and Civil Supplies Department, Govemment oiTelangana, Dr.B.R.Ambedkar, Tetang'aha Seci5ta,iit, HiO-eranai._.5fii,Odzz,Telangana.rJonsumer Aratrs, Foocls and Civil Supplies Department, Govemment oiTelangana, Dr.B.R.Ambedkar, Tetang'aha Seci5ta,iit, HiO-eranai._.5fii,Odzz,Telangana.

2. T-elan^gana state civil supplies corporation Limited (TGSCSCL). Reo.. bv itsVice.ctairman and , Managing Dirdctor, Registered'offic-e at. oli-os5i'rid, [""]Block-g, Civit Suppties Bhavai, Somajijudal Hvo"raOio_loriOai, T;i;ft ;rr.Vice.ctairman and , Managing Dirdctor, Registered'offic-e at. oli-os5i'rid, [""]Block-g, Civit Suppties Bhavai, Somajijudal Hvo"raOio_loriOai, T;i;ft ;rr.

JThe Commissioner of Civil Supplies, Consumer Affairs, Foods and Civil'b_g_'b_g_Supplies _Departme_nt, Governnient of Telangana, negilieieo .mi" 6551 1 I A. Block-B. Civit Suoplies Bhavan, So"majiguda; XVOeraOiJ-SOOOAi,"i. Telangana.6551 1 I A. Block-B. Civit Suoplies Bhavan, So"majiguda; XVOeraOiJ-SOOOAi,"i. Telangana.

4. Telangana.The District Collector, Khammam District, Khammam Town and , Dstrict,

5. The Collector (CS), Khammam District, Khammam Town and District,Telangana.Telangana.

6. The Additional Collector (CS), Khammam District, Khammam Town andDistrict, Telangana.The Additional Collector (CS), Khammam District, Khammam Town andDistrict, Telangana.

7. The District Civil Supply Officer (DCSO), Khammam, Khammam Town andDistrict Civil Supply Officer (DCSO), Khammam, Khammam Town andDistrict, Telangana.

8. The District Manager, TGSCSCL, Khammam District, Khammam Town andDistrict, Telangani.District, Telangani.

9. Union Bank of lndia, Rep- by its Branch Manager, Khammam Branch, Union9g1! [of ][tndia, at Gandhi ][Chriwk, ][Khammam ][fo"wri, ]fnammj; Di;ii;i: [-]507003, Telangana.9g1! [of ][tndia, at Gandhi ][Chriwk, ][Khammam ][fo"wri, ]fnammj; Di;ii;i: [-]507003, Telangana.

10. Karur Vysya Bank Limited, Bep,, by its Branch Manager, Khammam Branch,[arur [Vysy3.Bqnf ]_L]qr!tgd, [3-1-3/1 86 2, Sunder Tatkies Road, Khammam]I own and District_507003, Telangana.[arur [Vysy3.Bqnf ]_L]qr!tgd, [3-1-3/1 86 2, Sunder Tatkies Road, Khammam]I own and District_507003, Telangana.

.....RESPONDENTS

Petition under Article 226 of the constitution of lndia praying that in thecircumstances stated in the affidavit filed therewith, the High court may bepleased to issue an appropriate writ, order or,direction more particularly one inthe nature of wRIT oF MANDAMUS, to declaring the highhanded action of thethe nature of wRIT oF MANDAMUS, to declaring the highhanded action of the6th and 8th Respondents, in issuing the letter bearing Lr.No. Mktg/paddy/DefaultMillers, dated. 30.09.2024 and another letter bearing No. Mktg/paddy/DefaultMillers, dated .08.10.2024, by directing the bank authorities to FREEZE thepetitioners current Accounts, i.e., i) bearing No. 031 111100004401 which isopened in the name and style of Mis.SAR RlcE PRoDUCTS and ii) anothercurrent account bearing No. 1433135000007is7, which is opened in the nameand style of smt.Medempudi Rama Jyothi, i.e., 2nd petitioner herein, with the gthand 1Oth Respondents Banks and also questioning the consequential action ofthe [gth ]and 10th Respondents in freezing the 1 st petitioner rice miil currentAccount No. 031 111100004401 and another current Account bearing No.opened in the name and style of Mis.SAR RlcE PRoDUCTS and ii) anothercurrent account bearing No. 1433135000007is7, which is opened in the nameand style of smt.Medempudi Rama Jyothi, i.e., 2nd petitioner herein, with the gthand 1Oth Respondents Banks and also questioning the consequential action ofthe [gth ]and 10th Respondents in freezing the 1 st petitioner rice miil currentAccount No. 031 111100004401 and another current Account bearing No.1433135000007157 (2nd petitioner account) and which was communicated by the9th and 1Oth Respondents vide its Lr.No. 031 11lsRU2o24-2s, dated. 09.10.2024and Vide Lr.No. 9th and 1Oth Respondents vide its Lr.No. 031 11lsRU2o24-2s, dated. 09.10.2024and Vide Lr.No. M/BC/01r2o24-2s, dated. 02.11.2024, as arbitrary, iilegar andunconstitutional, and principle of natural justice, and violative of Articles 14, 1 gand 2't of the constitution of lndia and consequenfly to set-aside the impugnedand 2't of the constitution of lndia and consequenfly to set-aside the impugnedletter issued by the 6th and gth Respondents vide bearingLr.No.Mktg/Paddy/Default Milters, dated. 30.09.2024 and videbearingLr. No. Mktg/Paddy/Default Mi llers, dated. oB.'t o.2024 and its consequentia I actionof the [gth ]and'lOth Respondents vide its Lr.No. o31,r1tsR1t2o24-2s,Lr. No. Mktg/Paddy/Default Mi llers, dated. oB.'t o.2024 and its consequentia I actionof the [gth ]and'lOth Respondents vide its Lr.No. o31,r1tsR1t2o24-2s,dated.09.10.2024 and Vide Lr.No. MtBcloltzoz4-25, dated. 02.11.2024 in I

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freezing the 1st petitioner rice mill bank accounts, which is opened in the name ofM/s.SAR RICE PRODUCTS vide Current Account bearing No. 03111.t t O0OO44O1and , another Current Account bearing No. ['143313500O0OT157, ]which is openedon the name of 2nd petitioner herein.and , another Current Account bearing No. ['143313500O0OT157, ]which is openedon the name of 2nd petitioner herein.

|.A.NO:1 OF 2024

Petition Under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased todirect the 10th respondent, to forthwith unfreeze the 2nd Petitioner CurrentAccount vide bearing No.1433135000007157, which is on the name ofSmt.Medempudi Rama Jyothi, by suspending impugned lefter issued by the 6thRespondent vide bearing Lr.No.Mktg/ Paddy/Default Millers, dated.OB.1O.ZO24and its consequential impugned letter of 1Oth Respondent Vide Lr.No.MlBCll1l2O24-25, dated. 02.'11.2024, in the interest of justice, pending disposalof main writ petition.

l.A.NO:2 OF 2024

Petition Under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased todirect Respondents, not to interfere with the dayto-day operations of thepetitioners Current Accounts, i.e., i) Current Account vide bearing No.031 1 1 1 100004401 , and ii) Current Account vide bearing No. ['t ]4331350000071 57,which are existing in the 9th and ['lOth ]respondents banks, without following dueprocess of law, in the interest of justice, pending disposal of main writ petition.

|.A.NO:3 OF 2024

Petition Under Section 151 CPC praying that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased todirect the 9th respondent, to forthwith unfreeze the 1st Petitioner's rice millCurrent Account vide bearing No. 031 111100004401, which is on the name andstyle of Mis.SAR RICE PRODUCTS, by suspending impugned letter issued by the8th Respondent vide bearing Lr.No. Mktg/PaddyiDefault Millers, dated.

30.09.2024 and its consequential impugned letter of 9th Respondent vide itsLr.No. 0311115RU2O24-25, dated.O9.10.2O24, in the interest of justice, pendingdisposal of main Writ petition.

Counsel for the Petitioners : SRI R.N.HEMENDRANATH REDDY, SENIORCOUNSEL FOR SRI C.HARI PREETH

Counsel for the Respondent No.l, 3, 7 & I : GP FOR CIVIL SUPPLIES

Counsel for the Respondent No.2 : SRI T.P.ACHARYA

Counsel forthe Respondent Nos.4, 5 & 6 : GP FOR REVENUE

Counsel forthe Respondent Nos.9 & 10 : - W.P.NO: 32262OF 2024

Between:

1. M/s. ARM Agro lndustries, a partnership firm, Registered under lndianPartnership Act, 1932, Vide Regd. No. 212 of 2014, Registrar of Firms,Karimnagar, having its office at H. No. 4-73i3, Sy. No BgB, 899, 900/2,Arepally, Husnabad, Siddipet District, Telangana, Rep. by its Managing-Partner, Mr. Anandas Ram Mohan, S/o. Veeramallu, aged about 52 yearsPartnership Act, 1932, Vide Regd. No. 212 of 2014, Registrar of Firms,Karimnagar, having its office at H. No. 4-73i3, Sy. No BgB, 899, 900/2,Arepally, Husnabad, Siddipet District, Telangana, Rep. by its Managing-Partner, Mr. Anandas Ram Mohan, S/o. Veeramallu, aged about 52 years2. Anandas Ram Mohan, S/o. A. Veeramallu, aged about 52 years, Occ.Business, Rl/o. Plot No. 12, A R M Arcade, West Balaji Hills Colony,Boduppal, Uppal, Medchal-Malkjgiri District, Telangana - 500039.Business, Rl/o. Plot No. 12, A R M Arcade, West Balaji Hills Colony,Boduppal, Uppal, Medchal-Malkjgiri District, Telangana - 500039.

.....PETITIONERS

AND

1. The State of Telangana, Rep. by its Principal Secretary Consumer Affairs,Food and Civil Supplies Department Civil Supplies Bhavan, Enamanjil,Somajiguda, Hyderabad, Telangana.Food and Civil Supplies Department Civil Supplies Bhavan, Enamanjil,Somajiguda, Hyderabad, Telangana.

2. Telangana Slate Civil Supplies Corporation -Ltd., (TSCSCL), Rep. by its ViceChairman/ Managing Director, Civil Supplies Bhavan, Enamanjil, Sohajiguda,Hyderabad, Telangana.Chairman/ Managing Director, Civil Supplies Bhavan, Enamanjil, Sohajiguda,Hyderabad, Telangana.

3. The District Collector, Siddipet District Siddipet Telangana

4. The Additional Collector, Civil Supplies Department Siddipet District.

5. The Lead District Manager, The Union Bank of lndia Lead Bank Officelntegratqd District Offices Complex Duddeda (v), Kondapaka (M) SiddipetDistrict, Telangana.lntegratqd District Offices Complex Duddeda (v), Kondapaka (M) SiddipetDistrict, Telangana.

6. The Union Bank of lndia, Rep. by its Branch Manager Husnabad BranchAkkannapaeta Road, Husnabad Siddipet District, Telangana.Akkannapaeta Road, Husnabad Siddipet District, Telangana.

.....RESPONDENTS

Petition Under Article 226 of the Constitution [of ][lndia ][praying ][that in ][the]circumstances stated in the affidavit filed therewith, the [High Court ][may ][be]pleased to issue appropriate Writ, Order or direction more [particularly ]one [in ][the]nature of Writ of Mandamus declaring the action of the Respondents [in ][issuing]proceedings vide letter Lr.No. TSCSCL/SDPT/ Default mills/2023 dated06.04.2023 to the 5d1 Respondent directing the [freezing ][of ][bankaccount ][bearing]account no. 11131 1100002014 opened in the name [of ][Mis. ARM Agro ][lndustries]i.e., the 1st Petitioner herein with the 6th [Respondent ][bank and the ][consequent]action of the 6th Respondent bank in [freezing ]of [the ][account bearing ][no.]111311100002014 of the 1St Petitioner [firm ][without ][any prior ][notice ][or ][any]communication whatsoever as arbitrary, [illegal and ][violative of ][the Articles 14, ][19](1) (g), 21 of the Constitution of India as well as Principles [of ][natural ][justice ][and]consequently to set aside the [same directing ][the ][Respondents ][to ][defreeze ][the]said account.

l.A.NO:1 OF 2024

Petition Under Section 151 CPC [praying ][that ][in ][the ][circumstances ][stated ][in]the affidavit filed in support [of ][the ][petition, ][the ][High Court may ][be ][pleased ][to]direct the 6th Respondent to [forthwith ][unfreeze ][the 1st ][Petitioner ][firm's ][bank]account bearing no. 1 1 13't [1 ]['100002014 ][with the ][6th ][respondent ][bank.]

Counsel for the Petitioners [: ]SRI [R.N'HEMENDRANATH REDDY' ][SENIOR]COUNSEL FOR SRISANNAPANENI [LOHIT]

Counsel for the Respondent [Nos'1 & ][4 ][: ][GP ][FOR ][CML ][SUPPLIES]

Counsel for the Respondent [No.2 ][: ][SRI ][T.P.ACHARYA]

Counsel for the Respondent [No.3 ][: ][GP ][FOR REVENUE]

Counsel for the Respondent [Nos.S ][& ][6 ][: ][..]

The Court made the following [ORDER]

TIIE HONOUITABLE SMT. JUSTICE T. MADHAVI DE\/I

WRIT PETI'f ION Nos. 31583 and 32262 ot 2024COMMON OIIDER:

ln both the Writ Petitions, though the petitioners are different,they are both aggrieved by the orders of the respondents in issuingproceedings directing the freezing of their bank accounts for recoveryof the dues under the Custom Milling Rice agreernent lbr theconcerned periods.

2. Sri R. N. Hemendranath Reddy, leamed Senior Counselappearing for the petitioner in W.P.No.32262 of 2024 and also thelearned counsel for the petitioner in W.P.No.3l583 of 2024, have bothsubmitted that no notices were given to the parties before issuing theorders of freezing their bank accounts and therefore, the same are badin law. It is further submitted that this Court in W.P.Nos.l7985 of2024 and batch has observed that without determining or crystallizingthe demand, the respondents could not have resorted to recovery iI

TMD,JW.P.Nos. ll58lal,d f2262 of [2024]

procedure under the [Telangana Revenue Recovery ][Act, ][1864 ][(for]short,'R.R. Act').

3. The respondents have [filed ][a counter ][affidavit in ][W'P'No'32262]of 2024 and submitted [that ][the ][same ][is to ][be adopted ][in ][another ][case as]well. tn view thereof, [both ][matters have been heard ][extensively ][and]after hearing the [relevant ][parties, ][this ][court ][passes ][the ][following ][order.]4. Learned Senior Counsel [for ][the petitioner ][in ][W'P'No'32262 ][of]2024,has extensively [taken ][this ][court ][through various ][clauses ][ofthe]Rice [(Custom ][Milling) ][Order, 2015 ][(for ][short, ]['Order,]Telangana 2015') to demonstrate [that ][the millers ][are required to take ][delivery ][of]the paddy from the State [Corporation ][and ][after ][milling, ][deliver ][rice ][as]per the ratio fixed by the [State ][corporation/Food corporation ][of ][India]as ordered by the [State ][Corporation from ][tirne ][to ][time. ][It ][is submitted]that if the [petitioner fails ][to ][conform ][to the ][fair ][average ][quality or ][does]not deliver the rice [within ][the prescribed ][period, ][the ][respondents have]the authority to levy [a ][penalty ][for ][the ][short ][supply ][of ][the ][agreed ][rice']Learned Senior counsel [submitted that ][the ][Govemment ][of ][India ][has]extended the period for receipt [of CMR ][dues, ][including ][the ][payment ][of]

TMD,JW.P.Nos. I l58l32262 of 2024^nd 3penalties, for the seasons Rabi 2019-20, Rabi 2020-21, l(harif 2021-22, Rabi 2021-22 and Kharif 2022-23 by a period of 60 days from thedate of the memo dated 18.11.2024. Therefore, according to him,there is still time for the petitioners to pay the CMR dues for the aboveseasons, as is evident frorn the impugned order, the CMR dues forRabi202l-22 and Kharif2022-23 are sought to be recovered frorn thepetitioner in W.P.No.32262 while the CMR dues for Rabt 2022-23 andKhanf 2023-24 are sought to be recoveredllt the case ofW.P.No.31583 of 2024. Leamed Senior Counsel subnritted that theauthorities under the Essential Commodities Act, 1955 [(lor ]short, 'theE.C. Act, 1955') have no power to order the seizurc of the bankaccounts even for recovery of the dues. Learned Scnior Counselfurther submitted that unless and until the demand is crystallized, theauthorities cannot resort to recovery of the amounts under the R.R. Actand as seen from the irnpugned order, no notice was given to thepetitioner prior to raising of the demand under the letter dated06.04.2023 and hence according to him, the demand has not yet beencrystallized. Leamed Senior Counsel therefore relied upon the TMD,JW.P.Nos.31581and 32262 of 2024

Conclusion

TMD,JW.P.Nos.31581and 32262 of 2024

decision of the leamed Single Judge of this Court in W.P.Nos.17985 of2024 and batch, dated 28.08.2024 for the proposition that unless anduntil the demand is crystallized, the respondents cannot resort to theR.R. Act and cannot direct seizure of the bank account. LearnedSenior Counsel further placed reliance upon the decision of theHon'ble Supreme Court in the case of Ratan Babulal Lath v. State ofKarnatakat, for the proposition that where the Act is a code by itself,the respondents cannot take recourse to Section 102 of the Code ofCriminal Procedure. Leamed Senior Counsel submitted that the E.C.Act, I955 is a code by itself as it contains both the substantive as wellas machinery provisions and therefore, the recourse can only be underthe said Act, not in any other Act for freezing of the bank account, andas there is no provision under the E.C. Act, 1955 for freezing of thebank account, the impugned orders are liable to be set aside. LearnedSenior Counsel placed reliance upon the [judgment ]of the Hon'bleSupreme Court in the case of Bharat Petroleum Corporation Ltd v.N.R. Vairsmaniz, for the proposition that circumstantial flexibility,' 1zoz21 [ro ][scc ][2tt]'] [2004 ][(7) ][Supremc ][t ][26]until the demand is crystallized, the respondents cannot resort to theR.R. Act and cannot direct seizure of the bank account. LearnedSenior Counsel further placed reliance upon the decision of theHon'ble Supreme Court in the case of Ratan Babulal Lath v. State ofKarnatakat, for the proposition that where the Act is a code by itself,the respondents cannot take recourse to Section 102 of the Code ofCriminal Procedure. Leamed Senior Counsel submitted that the E.C.Act, I955 is a code by itself as it contains both the substantive as wellas machinery provisions and therefore, the recourse can only be underthe said Act, not in any other Act for freezing of the bank account, andas there is no provision under the E.C. Act, 1955 for freezing of thebank account, the impugned orders are liable to be set aside. LearnedSenior Counsel placed reliance upon the [judgment ]of the Hon'bleSupreme Court in the case of Bharat Petroleum Corporation Ltd v.N.R. Vairsmaniz, for the proposition that circumstantial flexibility,' 1zoz21 [ro ][scc ][2tt]'] [2004 ][(7) ][Supremc ][t ][26]

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TMDJW-P.Nos. ll58lan<l 32262 o12024

5one additional or different fact, may make a world of differencebetween conclusions in two cases and disposal of cases by blindlyplacing reliance on a decision is not proper. According to leamedSenior Counsel, the facts of each case have to be gone into beforeapplying the law of precedents and in support of the same, lre reliedupon the decision o1'the I lon'ble Supreme Court in the case of S. .I(asiv. Stote through Inspector of Police3. Learned Senior Counsel placedreliance upon the decision of the Hon'ble Supreme Courl in the case ofState o;f Karnata r'. Shree Rameshwara Rice Mills, Thirthahallf , forthe proposition that a party to the agreement cannot be an arbiter in hisown cause. Therefore, he has drawn the attention of this Court to theCMR agreement under which it is the Civil Court, which can decidethe dispute, if any, between the parties to the agreement. LearnedSenior Counsel relied upon the decision of the Hon'bte Supreme Courtin the case of Tulsi Narayan Garg v. M.P. Road DevelopmentAuthority, Bhopals, for the proposition that the respondents cannot (202 r) 12 scc I

(r9E7) 2 SCC t60(2022) t? SCC 750(2022) t? SCC 750

TMD.Jw.P.Nos.31581and 12262 of2024

initiate recovery proceedings unless the dispute [remained ][pending]crystall ization or fi nalizatton

5. Learned Government Pleader for Civil [Supplies, appearing ][for]respondents No. [I ], 3 & 4, on [the other ][hand, ][relied ][upon the ][averments]rnade in the counter alfidavit [and ][submitted ][that ][the ][petitioner ][has]defaulted in supplying CMR rice [and therefore, the ][dernand has ][been]raised against the petitioner and for [non-payment ][of ][the ][dernanded]amount, the respondents had [no ]other [option ][but ][to ][freeze ][the ][account]of the petitioner. In support of [his ][contentions, learned Govemment]Pleader placed reliance upon the [decision ][of ][the Hon'ble ][Supreme]Court in the case of Teesta [Atul ][Setalvad ][v. ][State ][of Guiarat6, ][for the]proposition that issuance of [prior ][notice ][to ][the account ][holder ][before]seizure of the bank account [is ][not ][required.]

6. Having regard to the rival [contentions ][and ][the ][material ][on]record, this Court finds that the [petitioners, ][as ][well ][as ][the ][respondents,]are bound by the CMR agreement [and ][the ][petitioners are bound ][to]provide the rice as per the allotment of [paddy ][made ][to ][it.]l-hc ,i (

TMD.JW.P.Nos- I1583and 32262 of 20247

respondents are also entitled to impose a penalty for short supply ofnce.However, the demand would have to be crystallized before thence.However, the demand would have to be crystallized before therespondents can initiate and undertake the recovery proceedings underthe R.R. Act. As seen fronr the impugned order dated 06.04.2023 inthe R.R. Act. As seen fronr the impugned order dated 06.04.2023 inW.P.No.32262 of 2024, exccpt for references to G.O.Ms.No. l3 dated16.10.2021, G.O.Ms.No.23 dated 18.10.2022, the report of the DepuryTahsildar dated 01.04.2023 and the Collector letter dated 02.04.2023,Tahsildar dated 01.04.2023 and the Collector letter dated 02.04.2023,there is no reference to any notice to the petitioner or the explanationof the petitioner before coming to the conclusion that thc amount to berecovered is Rs.27,76,09,996/-. Therefore, as observed by the leamedSingle Judge of this Court in W.P.No. 17985 of 2024 and batch, theof the petitioner before coming to the conclusion that thc amount to berecovered is Rs.27,76,09,996/-. Therefore, as observed by the leamedSingle Judge of this Court in W.P.No. 17985 of 2024 and batch, therespondents did not follow the procedure laid down under the R.R. Actwhile issuing a destraint order in Form No.l under Scction 8 of thewhile issuing a destraint order in Form No.l under Scction 8 of theR.R. Act; demand notice prior to the attachment of land in Form No.4under Section 25 of the R.R. Act and therefore, notice of attachment ofunder Section 25 of the R.R. Act and therefore, notice of attachment ofthe bank account in this case is not sustainable. As held by the Hon,bleSupreme Court in the case of Teesta Atun Setalvarl (cited supra), it isnot required to issue a notice to the account holder belbre the seizurenot required to issue a notice to the account holder belbre the seizure tI

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TMD.JW.P.Nos.1l58land 32262 of2o24

of the bank account, but a notice to the petitioner for crystalli zation ofthe demand before freezing of the bank account of the petitioner isdefinitely necessary i.e., before any coercive steps are taken under theR.R. Act. The respondents also cannot seize the amount in the bankaccount which is exceeding the demand amount. Therefore, it isnecessary that the demand has to be crystallized before taking anycoercive steps. This principle is applicable to the facts inW.P.No.31583 of 2024 as well.

7, In view of the same, the freezing of the bank account of thepetitioners are accordingly set aside and the petitioners are free tooperate the bank accounts. The respondents all are at liberty toproceed in accordance with law. Accordingly, both the writ petitionsare allowed. There shall be no order as to costs.

Pending miscellaneous petitions, if any, shall also standdisrnissed.

SDIA.V.S. PRASADASSISTANT REGISTRAR

//TRUE COPY//\SECTION OFFICER

1. The Principal Secretary [to Govemment, ][Consumer ][Affairs, Foods ][and ][Civil]Supplies Department, [Govemment ]of [Telangana, Dr.B.R.Ambedkar,]Telangana Secretariat, [State ][of ][Telangana at Hyderabad-500022, Telangana.]Supplies Department, [Govemment ]of [Telangana, Dr.B.R.Ambedkar,]Telangana Secretariat, [State ][of ][Telangana at Hyderabad-500022, Telangana.]2. The Vice Chairman [and Managing ]Director, [Telangana State Civil Supplies]Corporation [Limited (TGSCSCL), ]Registered [office ][at.6-3-655i ][l/A, Block-B,]Civil Supplies [Bhavan, Somajiguda, ]Hyderabad-5o0082, [Telangana.]Corporation [Limited (TGSCSCL), ]Registered [office ][at.6-3-655i ][l/A, Block-B,]Civil Supplies [Bhavan, Somajiguda, ]Hyderabad-5o0082, [Telangana.]3. The Commissioner [of Civil ][Supplies, ]@nsurner [Affairs, Foods and ][Civil]Supplies Department, [Government ]of Telangana, [Registered office ][at. ][6-3-]655/1/A, Block-B, [Civil ][Supplies ][Bhavan, Somajiguda, ][Hyderabad-50OO82,]Supplies Department, [Government ]of Telangana, [Registered office ][at. ][6-3-]655/1/A, Block-B, [Civil ][Supplies ][Bhavan, Somajiguda, ][Hyderabad-50OO82,]

Telangana.

. Khammam Districr, Khammam Town and Districr, Khammam Town and ffi"rJ:[::Coltector, , District,5. The Collector (CS). Kharerangana. [-' ][1'-7' ][' ][rr ][rdrrllrl?m District, ][[Khammam Town ]]and District,District,rerangana. [-' ][1'-7' ][' ][rr ][rdrrllrl?m District, ][[Khammam Town ]]and District,District, rerangana. [[Khammam Town ]]and District,District,t Ji:,"ffqfl",#lcollector [(cs), ][Khammam District, Khammam ]rown andJi:,"ffqfl",#lcollector [(cs), ][Khammam District, Khammam ]rown and \' I[:.:[T:L:ivit&pprv [orricer(DcSo), ][Khammam, ]Khammam rown andt Ii::#fT:LH#:"r, TGSCSCL, Khammam District, Khammam rown andt Ii::#fT:LH#:"r, TGSCSCL, Khammam District, Khammam rown and9. The Branch Minaqer. UrMinaqer. Ur[tl,*:ffi [iAffi ][lilti?:,?ffi ][!,.i,x[,fl1T#T8,!1tii;Hi,?iBankor]

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HIGH COURT

DATED:3111212024

COMMON [ORDER]

WP.Nos.31583AND 32262 [of ][2O24]

II((o[ir l ][tl= ][S ][f,q]oo(n(0 3 iAtr 2025>a.1of.grr4y6.r rF.0lr ALLOWING [THE ][BOTH ][WRIT ][PETITIONS]WITHOUT [COSTS,]

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